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Reward and Recognition

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1 Reward and Recognition
“Establishing an Effective Workplace Recognition System”

2 Module objectives: Candidates will learn:
What’s Lean about Reward & Recognition What is Effective Recognition & why do it. Recognition vs. Reward What to Recognise Recognition Tools

3 How does Recognition fit with Lean?
Effective recognition: Empowerment Culture Change Invert the pyramid

4 Recognition versus Reward cont.’
Maslow’s Hierarchy of Needs SELF ACTUALISATION SOCIAL / LOVE SELF - ESTEEM SAFETY PHYSIOLOGICAL

5 What is recognition? Any action called recognition should include
all three A’s: Acknowledgment Appreciation Approval

6 Seven critical success factors:
Sincere Fair and Consistent Timely Frequent Flexible Appropriate Specific

7 1.Sincere Don’t just say thanks for the sake of it – mean it.
Example: Long Service Qualifiers Put individual names in your area newsletter & attending their work group brief to shake hands and say thanks Great leaders honestly feel and know that their business could not survive without the work and commitment of their people. This knowledge should be reflected in every policy, practice, principle, and action that the leaders demonstrate. Writing ‘Congratulations to all those who have completed a long service milestone this month.’ in your area newsletter.

8 2. Fair and Consistent Recognition loses its value if it is perceived as inequitable or inconsistent. Standardisation is important. Don’t leave recognition up to managers – encourage peers to recognise each other. Example: Two teams have no accidents for over 1 year. One GL uses his initiative & asks you to come & thank his team. Find out if anyone else has equal achievement & visit all relevant groups. Share what you have done with other managers in your area. An organization should list the behaviors and activities that best serve achieving its business goals, then give everyone the responsibility of initiating recognition when these behaviors or activities occur. Send a congratulatory back to the Group Leader who contacted you & feel proud of yourself for being good at R&R.

9 3.Timely Immediate recognition ensures that achievements are not overlooked. The recognition is more likely to be remembered and thus the behaviour or practice more likely to be repeated. Example: An area receives a good score in an audit Before the score is announced decide what to do if the team reach or exceed the target score. When the results are announced personally congratulate the key players with a phone call / visit that day. At the end of the year, write a Xmas note to your team, listing the area’s achievements for the year.

10 4.Frequent There will be daily opportunities to say “thanks” – use them. It does not cost anything but is a great investment. Example: Attendance Make time in your diary each week to review attendance figures and send thanks to teams with good records. Wait until a team has 0% absence for 1 year and then send them an .

11 5.Flexible Recognition should be a personal matter – try & use a variety of recognition tools, matching your choice of tool to the individual / team’s needs. Example: Two of your direct reports complete projects on time with good results. You know one of them is quite shy, whilst the other enjoys being in the limelight. Speak to both separately & ask if they would like their project being highlighted on the area notice board with a photo of themselves. Without asking, get them to stand up in front of the wider team & give them an award.

12 6.Appropriate The recognition method selected should match the effort expended, the behavior exemplified, or the results achieved. Recognition should not be reduced to a lottery. Example: An individual & a team in your area both have no accidents for 1 year. Congratulate the team and give them a free meal voucher / coffee & cake during break. Send a general note to all in the area thanking everyone who has contributed to the area’s safety record. Give both the individual & the team a free meal voucher.

13 6.Appropriate Appropriate Recognition Tools
Initiated improvement activity to solve Difficult quality issue or make substantial cost savings Featured in Industry magazine / External media. MD congratulates. Article in company magazine. Display featured in prominent area on site e.g. canteen. Plant or regional manager congratulates. Team has achieved a number of targets, e.g 0 accidents Small article on team or individual in plant magazine Mention on screen saver/ intranet Display on area notice board Area manager attends team meeting to congratulate. Team taken part in Kaizen activity or 6Sigma project Long service Good Spot Good attendance record (team or ind) Supervisor / Group Leader mentions in team meeting. 'Well done' posted on team or area notice board Mentioned in area newsletter

14 7.Specific Recipients should know exactly what they are being thanked for and why their contribution is valuable. Example – An operator carries out a Kaizen activity making cost or waste savings. Ask the operator to demonstrate what he has done and why. Thank him personally & explain why what he has done is important to you and the business. If appropriate arrange for his project to be featured on a wall display / plant magazine. Thank him for his ‘hard work’ via an to his Group Leader.

15 V Recognition versus Reward “Hearts and Minds” Concept:
To encourage individuals to want to change, want to be their best, and want to come to work, you must win over both their ‘hearts’ and their ‘minds’. Recognition will win over both. Recognition and reward are often used synonymously or are combined into one system – the R & R system. However, often efforts to improve R & R systems totally neglect recognition. V

16 Differences between Reward and Recognition
Recognition Reward Non-cash Monetary Needed frequently Infrequently changes Psychological Financial Personal Impersonal Value – and principle-based Based on corporate budget Used to keep employees Used to attract employees Reinforces behaviours Supports short-term goals

17 What Should You Recognise?
Values and Behaviours: Recognising the behaviors that you want to encourage and see repeated. Objectives and goals: Recognising a the achievement of team, area or plant goals / targets.

18 What to Recognise Behaviours to recognise include: Team working
Continuous improvement mindset. Building quality into the process Encouraging safe working Incident Reporting Lean thinking Sharing of best practice Appropriate Escalation Good use of 5C Use of Work Group board as focus for group activity.

19 What to Recognise Achievements that we should be recognising include actions towards achieving work group, department, or plant objectives. For example: No Lost Time Accidents / good team safety record Putting forward an idea for a kaizen activity which will eliminate waste from a process 100% attendance Involvement in an environment / community programme. Instigating a time saving / standardising idea. Team achieves excellent right first time score. Green Belt training completed.

20 Recognition Tools Thank you Lunches or after work events Family days
Recognition Boards Thank you Lunches or after work events Family days

21 Recognition Tools Go – Look – See – Say Thank you !
Team meetings / briefs Newsletters & Magazines

22 Group Exercise How would you recognise each of the following achievements: Work Group has not had any accidents for a year. Area has had no accidents for one month. Somebody is celebrating 30 years service with the company. Plant achieves an exceptional score in an audit An individual’s kaizen idea is implemented, which improves a simple process. An individual spots a potential quality issue A Group Leader makes a presentation to senior management on a plant tour.

23 Benefits of effective recognition:
Reinforces desired behaviours, practices, principles, and values. Gives the organisation the ability to show appreciation and say “thanks!” Builds self-esteem. Promotes trust and respect. Facilitates and encourages change. Drives improvement. Celebrates success. Improves the quality of work life.

24 Benefits of effective recognition
9. Motivates individuals and teams to do their best. 10. Enhances loyalty. 11. Creates a positive attitude and confidence that carries over to public. 12. Addresses the basic human need to feel appreciated. 13. Reflects commitment to each other. 14. Inspires accomplishment and achievement. 15. Empowers individuals and teams 17. Drives out fear. 18. Improves the bottom line.


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